This story was originally published on December 25, 2025 in IEEE Spectrum.
Writer: Gwendolyn Rak
“AI is not going to take your job. The person who uses AI is going to take your job.”
This is an idea that has become a refrain for, among others, Nvidia CEO Jensen Huang, who has publicly made the prediction several times since October 2023. Meanwhile, other AI developers and stalwarts say the technology will eliminate countless entry-level jobs. These predictions have come at the same time as reports of layoffs at companies including IBM and Amazon, causing anxiety for tech workers—especially those starting their careers, whose responsibilities are often more easily automated.
Early reports have borne out some of these anxieties in employment data. For example, entry-level hiring at the 15 biggest tech firms fell 25 percent from 2023 to 2024, according to a report from SignalFire last May. Still, it’s unclear what the long-term effects will be, or whether hiring cuts are actually a result of AI. For instance, while Meta laid off 600 employees from its AI division in October (and continued hiring other AI researchers), OpenAI began hiring junior software engineers.
In 2026, all new graduates may face a tougher job market in the United States. Employers’ rating of the job market for college graduates is now at its most pessimistic since 2020, according to data from the National Association of Colleges and Employers (NACE) Job Outlook 2026 survey. However, 49 percent of respondents still consider the job market “good” or “very good.”
So, what does the rise of generative AI mean for early-career engineers?
“This is a tectonic shift,” says Hugo Malan, president of the science, engineering, technology and telecom reporting unit within the staffing agency Kelly Services. AI agents aren’t poised to replace workers one-to-one, though. Instead, there will be a realignment of which jobs are needed, and what those roles look like.